A consortium created by a joint venture of the two companies bought 80.2% of CESP’s common shares and 13.7% of its class B preferred shares in an auction held by the state of Sao Paulo at the Brazilian Stock Exchange on Friday. The group offered USD 14.60 per common and class B preferred share for a 35.6% interest, which equals an investment of BRL 1.7 billion (USD 457.7m/EUR 398.3m).

The JV partners will kick off a mandatory tender offer for the remaining common and class B preferred shares of CESP after they assume control of the hydropower producer.

The transaction, which is subject to regulatory clearance, will result in CESP getting a new 30-year concession for the 1,540-MW Porto Primavera HPP in exchange for a BRL-1.4-billion payment, the announcement says.